Conversion of CCPSS as per FMV and in accordance with shareholder agreement can’t be treated as a sham transaction

INCOME TAX : Where compulsorily convertible participating preference shares (CCPPS) were converted at a share premium of Rs. 210 each which was agreed in accordance with share holders agreement entered into with foreign investors by assessee and at fair market price which was determined at time of issue of shares and conversion of CCPPS was made to independent third parties which does not have any direct or indirect relation with promoters of assessee,

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000192643/conversion-of-ccpss-as-per-fmv-and-in-accordance-with-shareholder-agreement-can’t-be-treated-as-a-sham-transaction.aspx